Communication is the process by which information is transmitted and understood between two or more people. An effective transmission of information is very important to a business, as it involves all the persons and organisations connected with that business. Communication is a critical core skill for managers. In their standpoint, 'effective' communication is one means by which they get things done. For example putting forward a vision and informing workers in organisations. Being often referred to as lifeblood of an organisation, communication can bring great advantages, if operated as flawlessly as possible, or can completely devastate it, if being stagnated at some point in transmission. Therefore it is important for businesses to make sure there are no barriers to communications, so they serve to enhance firm's competitiveness and build knowledge-sharing.
The purpose of communication ranges from completing a task to satisfying human relationships within the organisation. Two types of communication networks can be used to achieve this; formal and informal.
Formal communication networks define who should speak or report to whom. Such communication can be downward, upward and vertical. Downward is one-way, from superiors to those who report to them. This is when no reply is expected and is used only to give orders or provide information. Upward is a two-way communication referring to messages going from subordinates to superiors. This is when feedback is required from the receiver. Middlemist (2000, page 323) stated that in such communication, "higher-level managers involve their subordinates more in the decision-making process and thus expect upward communication more than do lower-level managers." Horizontal communication is between colleagues at the same level of position in the organisation. This form of communication keeps equals informed of actions taken or helps discuss how to solve a problem together.
Informal communication networks are interactions based on friendship...